Can anyone suggest a loan/credit card option for debt consolidation?

KeysMcK

Hi all.

I'm 21, and a student. During my time as a student I've run up a little debt. £1500 overdraft (not need to worry about this for 5 years, its only then I pay any interest, still on a low percentage! That will clear) BUT I also have a Vanquis credit card. This card has a £3k limit, currently about £2k in, paying in the region of £90 per month to maintain.

Once I graduate, and turn 21, in june, I'm hoping to get into employment, relocate etc, and I need to know what the best course of action would be to clear my card?

My credit score isn't the greatest. According to Checkmyfile.com I have -

599 - call credit: comments being 1)I'm 21 2)I defaulted on one account (referring to a t-mobile contract I took out when I was 16 with a fake DOB, I'd forgotten it existed until today, apparently I owe £16!)

541 - Equifax: comments being
1)Aged 21
2)1 late account (my mobile contract a couple of months ago),
3) Two defaulted accounts (a Virgin Media account that my old housemate was meant to have taken over, I only found out he'd not been making payments on it a few months ago! Says it's £100 in arrears AND an old Vodafone account I defaulted on, however I paid that off about a year ago, and it does show up as satisfied)
4)Not on electoral role (thought I was, but I'll update that, can't see it impacting much though!)

Anyone have any advise for me? Its soul destroying paying so much a month just to maintain a card, not even pay anything off! A low APR card, or a bank loan would be ideal!

PeacefulWaters

A low APR card, or a bank loan would be ideal!

These tend to be available to those who pay their bills on time.

Voters roll is a massive player in credit worthiness as is a good payment record.

thewhiteavenger

So, get on the electoral roll


Pay your mobile contract on time


At some point you will be able to get a 0% balance transfer deal to a new card, and there are pre-acceptance eligibility checkers on this site that you can use to check.


Oh, and you need to sort out that contract that someone else is supposed to be paying for you.

Sedge123

Would it not be cheaper for you to take out s student loan rather than use s credit card?
I think that until you are in secure employment the best you can do is try and ensure any debts you have, however small are paid off.

longtermplanner

Are you using the Vanquis card? If so, you have to to stop doing this. Cut it up. You only have a few months to go and presumably much of that time will be spent in revising and finals (good luck!) so this is the perfect point for a massive economy drive.

[Deleted User]

From bitter personal experience, my advice would be, don't take out a consolidation loan.

Gaz83

Bedsit_Bob wrote: »

From bitter personal experience, my advice would be, don't take out a consolidation loan.

Well, that's just a bit daft. Consolidation loans work fine for lots of people, especially if it's from a reputable bank at a sensible APR.

What is the bitter personal experience you speak of?

sistafromanothermista

Maybe the fact BSB is now debt free? Plenty of threads about his journey....



Ps. Well done BSB

bargainbetty

KeysMcK wrote: »

Hi all.

I'm 21, and a student. Do you have any actual income? Part-time work etc? This will determine quite a bit of affordability on regular credit.

I need to know what the best course of action would be to clear my card? You need to stop using it, and pay off more than the minimum every month, regardless of any refinancing you may later obtain.

2)I defaulted on one account (referring to a t-mobile contract I took out when I was 16 with a fake DOB, I'd forgotten it existed until today, apparently I owe £16!) This will hurt you until the default drops off. At the very least, pay it off to get it marked as 'satisfied'. Not great, but slightly better.

2)1 late account (my mobile contract a couple of months ago), Make sure you pay on time - late payment markers and defaults do not look attractive to lenders. Not will they do so for several more years.
3) Two defaulted accounts (a Virgin Media account that my old housemate was meant to have taken over, I only found out he'd not been making payments on it a few months ago! Says it's £100 in arrears AND an old Vodafone account I defaulted on, however I paid that off about a year ago, and it does show up as satisfied) The Vodafone default will remain on your record for six years, albeit as satisfied. Check that the Virgin Media account is up to date, and then close it or have your name completely removed from it. If it means paying it off and losing money, just do it and argue with him later. Make sure that Virgin Media have a record of you formally closing the account and that your friend cannot reinstate it at any point. This will also remain on your file for six years from the date of the default.
4)Not on electoral role - this does make a difference.

Anyone have any advise for me? Its soul destroying paying so much a month just to maintain a card, not even pay anything off! A low APR card, or a bank loan would be ideal!

With all due respect, you've got three defaults, recent late payments and you've chosen to run up the card and not pay it off on route. I know it's soul destroying, but you need to accept that your financial choices have left you with a significant problem.

If you can obtain a student loan to consolidate, and if you can trust yourself to close down the card entirely and not take out more credit, a consolidation can work. Bear in mind that comes from someone who failed at it twice, and took 10 years to get clear of debt. It is not for those who like temptation, and with your upcoming expenses (relocation etc) you might find it won't work for you.

Otherwise, your only option is to increase your income and throw every spare penny at clearing your debts. Work over holidays, weekends, evening etc. Do everything you can to clear that card. You may find that you struggle to obtain credit for six years with those defaults on there, so you should also think about how you plan to fund that relocation - it won't be easy, and you made need a guarantor for your rent too when you first move.

Good luck